The Basics of Saving

There are five basic methods I use to save money.

1. Just don't buy it.
2. Buy it for less.
3. Use less.
4. Use it less frequently.
5. Stretch it out.

Number one is simple. When compelled to purchase something you don't really need, just don't do it. This also comes in handy when you know you can make it yourself (a scarf, a cake, etc.). A little deprivation goes a long way in building financial security.

To successfully purchase items for less, comparison shopping is required, which means you'll have to put forth a bit of effort. Thanks to the internet, comparison shopping has become much easier, but don't forget to check with thrift stores. Also consider renting rarely used items (you could even rent from a neighbor!) if it's more cost effective.

There are dozens of ways in which to use less in our everyday lives. Do you fill the laundry detergent all the way to the top of the cap for every load, regardless of its size? Could you use less toothpaste or dish washing liquid? Do you really need six cups of coffee? Could you use fewer grounds each morning and maybe drink a cup or two less? (Why do I hear screaming and threats of bodily harm over the last suggestion?)

I can wear out a pair of tennis shoes quickly and even though I purchase them on sale (using method #2), I don't want to have to spend a ton of money each year buying shoes (odd for a woman, I know). So, I simply use my newer shoes less frequently. If I'm doing chores or errands, I'll wear my old sneakers. When I'm working out and need the extra support, I wear my newer shoes. This method can be used for other modes of transportation as well. How about using your car less and the bus more often?

"Stretching it out" is similar to using something less frequently. I employ this last method when it comes to haircuts (can you stretch it out to every 7 weeks instead of every 4?) and other services I receive on a regular basis. By stretching it out just a week or two, you can save hundreds every year.

It's important to keep in mind that these methods can be combined for maximum savings. The tennis shoes I mentioned before are a perfect example. I don't buy the ridiculously cute, uber expensive ones (method #1) and opt for the not quite as adorable but perfect for my needs shoes on sale at a discount store (method #2). I use the newer shoes only during my work outs (method #4), which provides a greater length of time before I need to buy a new pair (method #5).

Try to find areas in your life where you can mix and match these savings methods, and share your stories!

Transitions

I have recently gone through a transition where my salary was cut in half. I'm so grateful that my mother and grandmother taught me the skills of frugal living. If I didn't know how to "squeeze a dime 'till it screams" as my mother used to say, I would have had a much more difficult time.

Beyond the concrete changes I've made (spending less, cutting luxuries out), there has been an emotional component as well. I am committed to never working in an environment I loathe again but am also aware that my time and experience are valuable and should be compensated accordingly. This transition has taught me not only to be careful about the work I choose but to be mindful about how I treat myself while navigating a new path.

Living on less during a transition has taught me:

1. Stop comparing. This isn't just about not comparing myself to the Joneses and all their cool stuff, but to stop comparing where I am now to where I was. Whether you make more or less, it's important to focus on the present and the best possible way to move forward;

2. Saving is more important than any new gadget, piece of clothing or fabulous meal. I lamented (stop that! see #1 above) that I had spent so much on things I didn't really need and wished I had saved more. To make saving easier, I automated my savings through Emigrant Direct;

3. Quality of life should be part of any new career path. Calculate your real hourly wage before taking a new position. The salary may seem grand and tempting, but if you include commuting, the wardrobe required, a realistic work week (will there be community meetings in the evening in addition to the 40 hour week?), stress levels (will you need to take an hour after the commute to calm the rage?), etc., you may not be making that much money after all; and

4. Find fun things to do that don't require spending money. Like most Americans, the more I made, the more I used to spend. Making less has knocked some sense into me and made me realize how unhealthy that behavior pattern is. Instead of spending a fortune on going to movies, etc., I've discovered new walking paths near my house, had tea parties with friends and spent more time learning new recipes.

As strange as it may sound, making less and living more frugally has given me a greater appreciation of each day. I'm more engaged in my life and mindful of each choice that I make. It's far better than being on auto pilot, commuting to an unpleasant job and spending unconsciously for a temporary, hollow thrill.

When You're Just Plain Broke

I was discussing my refusal to shop at Wal-Mart, in the context of living a socially responsible, frugal lifestyle, with a friend. She voiced that she was "just too broke" not to shop at the cheap, yet exploitative empire.

Anyone living on minimum wage (or worse) can surely relate to my friend's comments. I have worked with people who could barely afford to put a roof over their heads. But every single person I've encountered spends in areas where they could cut back (myself included).

I recommend that every literate person read Your Money or Your Life because of its focus on aligning our spending with our values. My friend doesn't want to support the exploitation of factory labor in China and Latin America or "associates" in Wal-Mart stores in the States. Yet every time she gives Wal-Mart one of her scarce dollars, she is, in fact, supporting that exploitation.

So, what do you do if you have a limited income yet want to support healthy economies and businesses that empower employees? Oddly enough, the same advice applies to everyone who wants to spend according to their values. However, delayed gratification takes a center role if your income is limited. Here are a few tips to navigating life on a limited income.

1. Keep track of all spending and all income for three months. Everything. The penny you find on the street. The unexpected $20 from Mom. The 35 cents for the parking meter. Write every single cent down. Keep receipts for purchases so that a trip to the grocery store isn't just a number but a spending spree you can dissect.

2. Place your spending into two categories: Essential and Non-essential.

3. Put your income into two categories: Work and Gifts. This is particularly important if your income fluctuates. You may also see a pattern in gifts (money given for birthdays, change found on the sidewalk, etc.). If your income fluctuates significantly from month to month, it's best to track your money for six months to determine the monthly average.

4. Once you have everything in black and white, take a look at those items under the essential category to determine if they really are essential. Yes, you need to eat, but does it really need to be Kashi's latest fiber-in-a-box? Would oatmeal work instead? Is cable really an essential? Pot? Wine? Cigarettes? What have you deemed essential that is really an indulgence?

5. Look through non-essential spending and see where you can cut back. Can you stretch out the time between haircuts? How about making a pizza from scratch at home instead of ordering out?

Even the most frugal among us can probably find a place or two to cut back. But if you are significantly in debt and have a limited income, it may be in your best interest to find the least expensive price possible for your needs. Which may mean shopping at Wal-Mart (shudder).

However, will that trend continue once you have more money? Many people claim that they will save more or give to charity once they start making a larger salary. Instead, the more they make, the more they spend. If you've fine tuned the art of shopping at retailers that exploit, chances are, you'll simply spend more with those same companies.

So, if you're "too broke not to" support your local economy:

1. Start writing everything down and make a budget (for budgeting tools, check out my Helpful Tools post);

2. Read Your Money or Your Life and follow the steps to get your spending in line with your values;

3. Automate a Debt Repayment Plan;

4. Make a Price Book to find the least expensive items, preferably from locally grown food and locally owned businesses. But if you absolutely can't afford it, make a firm commitment to support local businesses once you are out of debt; and most importantly

5. Stop spending money. Find the leaks in your budget and plug them. The best way to get out of debt and/or build a savings is to stop spending money on things you simply don't need. If you're feeding a nicotine addiction, there's no sense in whining about how poor you are and just can't support local farmers. (That was a big harsh, wasn't it? Welcome to financial reality!).

A little tough love and careful planning can build a comfortable financial safety net and allow you to support the economy in a healthy manner.

Summertime Swimming

Soon it will be time for swim suits, relentless sun and ample SPF. Swimming is one of my favorite activities. Thankfully I live near the beach in sunny Southern California. Although I love the security of shark-free swimming pools, I don't care much for the effects of chlorine on my skin and hair. And regardless of what water parks profess, man made contraptions just don't stand up to real ocean waves.

If you don't live next to the ocean, chances are there are still plenty of natural blue places available for a dip. Check out Swimming Holes to see what lakes, ponds and rivers are near you.

The site provides tips for swimming safely in natural waters and unlike swimming pools, most of the sites listed are free! If you don't find your favorite natural swimming hole listed, make sure to share your spot with fellow nature lovers on the site.

And Facials for All!: earth day everyday!

Check out this great post, filled with wonderful information, from Facials for All! about how you can make everyday Earth Day.

And Facials for All!: earth day everyday!

Cost Cutting Grocery Tips

I spend more than the average frugal bear on food, because I am a proud supporter of local food artisans (we used to call them farmers, didn't we?). However, I still spend much less than many of my fellow foodies and the average American consumer. Here are a few tricks (look here and here for more tips) I use to spend less on groceries while still supporting my Slow Food lifestyle:

1. Choose the cheaper option. You may love that sugary box of au-natural, fiber rich cereal, but you can dress up oatmeal for a fraction of the cost.

Friends raved about how delicious albacore tuna is. It is delicious, when prepared properly. When in a can, it's dry and tasteless. The cheaper version actually works better for my needs. Check and see where you are choosing a more expensive option that can easily be substituted with something less expensive;

2. Eat less meat. This tip is particularly useful if you choose to purchase sustainably produced cuts of meat, which can be quite expensive;

3. Use what you have. If your pantry is full of ingredients that could make a complete meal, there's no point in taking the time (and gasoline if you drive) to run to the store;

4. Make it from scratch. It's almost always cheaper;


5. Shop in unfamiliar locations. It's best to support local farmers, grocery store owners and food artisans. Have you tried the Indian or Asian market in your area? If you're lucky and live near an Amish or Mennonite community, visit and see what goods they have to offer. They'll often have staples at a fraction of the cost. If you buy grains in bulk, be sure to stick them in the freezer for 48 hours to kill any bugs and extend shelf life; and

6. Convenience often isn't worth the cost. It take a few seconds to rinse and dry lettuce. Buying a full head of romaine, red leaf, ______ (fill in your favorite leafy green) will give you more produce for less than the cost of its packaged cousin. If you don't have a few seconds to rinse and dry lettuce, it might be time to reevaluate some things.

Rummage through your kitchen and look at all things you purchase for convenience that are much cheaper in their less convenient, but easily prepared forms: beans, salad dressings and baked treats quickly come to mind.

Also keep in mind that you can easily make your own convenience foods by buying and cooking in bulk, freezing single serving portions for later. Small change add up to big savings. The best part is that you can still support local farmers and food producers with a sensible, limited budget.

Visiting Museums

Many frugal zealots discourage travel. I can't agree with my fellow penny pinchers on this subject. Travel introduces us to new cultures and landscapes that can expand and open uncharted parts of ourselves.

There are really two ways in which to travel: plan carefully or wing it. More than likely, you have a better chance of saving money if you plan carefully.

For the planners out there who love museums, check out Museum Stuff, where you can search for museums of all kinds, particularly those that are free or are free on specific days. Happy exploring!

Health & Fitness On a Dime

I live in Southern California where gym memberships reign supreme. Unfortunately, I've heard several horror stories of high pressure sales techniques, required multi-year contracts with crowded, smelly gyms and poorly trained (and often rude) staff. With the endless sunshine that my area offers, I'm always surprised when I see people running on treadmills when the beach path is less than a quarter of a mile away.

Even if you don't live in the Sunshine State with beach paths, there are plenty of frugal health and fitness tools available. However, if you feel that a gym membership is vital to your health, find a locally-owned facility. Chances are, you'll receive better service and more personalized attention. Not to mention, you'll be supporting a local business owner!

Although there are digital pedometers available, you can track your mileage and calories burned for free at Gmap Pedometer. You can also map your route or find new routes in your area at Map My Run.

To track your food intake, exercise or other health goals, create a free journal at FitDay.

A key to any healthy and frugal lifestyle is cooking at home. To learn basic and intermediate techniques of cooking, visit The Reluctant Gourmet.

If you're new to fitness or haven't exercised in a long time, it might be a good investment to initially work with a trainer. Just keep in mind, finding a trainer is much like dating. You may have to kiss a few frogs. I found a trainer who has graciously agreed to work with me at a reduced rate. I feel good about the expenditure, as I am making an investment in my health while supporting a local, self-employed woman.

For plus size folks who aren't as lucky as I have been in finding a trainer sensitive to the issues surrounding fat prejudice, check out the videos available from Kelly Bliss.

It's also easy to find VHS and DVD exercise videos at thrift shops and many used sporting goods stores provide inexpensive equipment to use at home.

Keep in mind, you don't need new, expensive clothing to sweat in. And honestly, you don't need any equipment either. I remember a photo from a travel magazine showcasing an African tribesman in a remote village who was sporting sick pack abs. Chances are, he wasn't attending any local gyms. Running, walking, and calisthenics may be all you need!

Frugal Pet Care

If you're like me, you think of your pets as children, despite the Dog Whisperer's insistence that to do so is criminal. And kids are expensive, right? Not necessarily.

Here are a couple of tricks I use to reduce the costs of caring for my two doggies:

1. Instead of buying prepackaged, expensive dog treats that often have ingredients I can't pronounce, I purchase chicken or turkey hot dogs on sale in bulk. The hot dogs are usually less than half the cost and contain products I can actually comprehend. You can cook them in advance, freeze them and bring them out as needed.

Before you protest that hot dogs are unhealthy, I've found that many "healthy" puppy snacks are often filled with sugar and enriched bleach flour. I'm not convinced that's any healthier than turkey parts;

2. Think of cooked veggies as a treat. I had no idea that dogs could eat vegetables until my mother heard the news on an NPR pet show. My weekly homemade veggie soup can now be shared with my pooches, providing them with an exciting treat at very little cost;

3. Buy toys at thrift shops or yard sales. Baby teething rings, stuffed animals, whatever your pet may prefer can usually be found for a fraction of the cost when used;

4. Sign up for free and reduced cost pet programs. Since my dogs were rescue pooches, I was able to receive a free bag of dog food from a locally owned pet store. The local shop, as well as the giant Petco, provide a free bag of food if you meet certain requirements. Pet food is also one of the few areas where I actually use coupons.

Each Wednesday, a locally-owned pet clinic provides reduced cost vaccinations. Check with your vet to see if they have similar programs.

5. Groom your pets at home. I give this tip cautiously, as I recently wounded one of my dogs. Be very careful, particularly near the hind legs where the skin is fragile! Taking my pooches to the groomers normally costs $100. For $40, I bought a grooming kit and have been able to do the job myself at least four times now. Make sure to keep all relevant packaging, as some kit manufacturers will sharpen clipper blades for you for free.

I'll admit, my dogs don't look quite as perfect as they do when professionally groomed (ok, so they kind of look like they have mange), but when a friend called their haircuts "punk rock" I decided it wasn't so bad after all.

Free Journal Articles

Have you ever found yourself researching a topic on the web, mucking through endless pages only to find that the perfect article requires that you sign up and pay a fee to access it? Or perhaps you want to read an article in a non-local newspaper but don't want to have to purchase a subscription?

Log onto Congoo News and get their free Netpass for up to 15 premium articles a month from more than 200 sources.

It's Tax Time!

It's that lovely time of year again when we square up with Uncle Sam. No, I don't have any expert advice on tax breaks. I'll leave that to the professionals. However, I do advocate knowing just what you're paying, what you're due and what you owe.

So, while you're rustling through receipts and tax forms, go ahead and get your Annual Free Credit Report to make sure everything in the Big Brother financial world is going well.

The link is genuinely free, although they will try to get you to pay $5.95 and/or $7.95 to learn your credit score. Unless you plan on purchasing a car or home, it's really not vital to know your score every year. You can check with each of the three major credit reporting agencies (I found that TransUnion was the most comprehensive and accurate), and each site offers tips on how to challenge discrepancies.

As you well know, the better your credit report, the better your chances at getting lower rates on all things credit (why don't we all just call it what it is? DEBT) related. Although a tiny blemish may not seem like a big deal now, it will to those mortgage folks you're saving all that money to impress with a fat down payment. So, take care of your records!